Council staff shortages cause delays at housebuilder

Low-cost housebuilder and land promoter MJ Gleeson has said the business is performing well despite “widely reported challenges” faced by the sector ahead of its AGM today.

The Sheffield-based business noted that demand for its low-cost homes remains strong and that selling prices continue to increase with average selling price up 12% on the same period last year.

However chairman, Dermot Gleeson will will caution those at the AGM that “continued congestion in the planning system” which is partly the result “of a shortage of staff in council planning departments” is causing some delays in site acquisitions and starts. But that he hopes for “an improvement in the planning process” which would enable them to acquire 25 sites during the year to June 2022.

Sales at the housebuilder are expected to be circa 900 in the six months to 31 December with no less than 2,000 homes sold by the end of the financial year .

Gleeson will also tell the AGM that: “Whilst the construction sector continues to experience availability and cost pressures with respect to labour and materials, Gleeson Homes has worked closely with its suppliers and subcontractors and has been able to continue building on all its sites.”

Adding that land continues to be available at sensible prices and the pipeline remains strong, with Gleeson currently having a pipeline of 15,384 plots with a gross development value of £2.4 billion, of which over half (7,961 plots) are owned and the remaining are conditionally purchased.

Looking ahead the business believes that strong demand driven by the need for more low-cost, high-quality homes for first time buyers mean the outlook for the housebuilding division remains positive.

In its land promoter division – Gleeson Land – it is noted that there remains strong demand for consented land with one site already sold this financial year and two more actively progressing and expected to complete by the end of the year.

The division’s land pipeline currently consists of 71 sites which have the potential to deliver approximately 22,000 plots, including four sites, with the potential to deliver 1,816 homes, which have planning permission or resolution to grant.

Gleeson is expected to note that: “[The board] are pleased with the progress in the year to date and remain confident that the result for the year to 30 June 2022 will be in line with market expectations.”